Questions from General Accounting

Q: The city of Toledo has received a proposal to build a new

The city of Toledo has received a proposal to build a new multipurpose outdoor sports stadium. The expected life of the stadium is 20 years. It will be financed by a 20-year bond paying 8 percent inte...

Q: Adrian Power manufactures small power supplies for car stereos. The company

Adrian Power manufactures small power supplies for car stereos. The company uses flexible budgeting techniques to deal with the seasonal and cyclical nature of the business. The accounting department...

Q: Cogen’s Turbine Division manufactures gas-powered turbines for generating electric power

Cogen’s Turbine Division manufactures gas-powered turbines for generating electric power and hot water for heating systems. Turbine’s variable cost per unit is $150...

Q: Vorma manufactures two proprietary all-natural fruit antioxidant food additives that

Vorma manufactures two proprietary all-natural fruit antioxidant food additives that are approved by the U.S. Food and Drug Administration. One is for liquid vitamins (LiqVita) and the other is used b...

Q: Advanced Micro Processors (AMP) has designed a new dual-

Advanced Micro Processors (AMP) has designed a new dual-core microprocessor, dubbed DUALxl. DUALxl microprocessors are produced on silicon wafers with 100 chips per wafer. Once fabricated,the wafer is...

Q: Magnetic resonance imaging (MRI) is a noninvasive medical diagnostic device

Magnetic resonance imaging (MRI) is a noninvasive medical diagnostic device that uses magnets and radio waves to produce a picture of an area under investigation inside the body. A patient is position...

Q: Royal Holland is a cruise ship company. It currently has six

Royal Holland is a cruise ship company. It currently has six ships and plans to add two more. It offers luxury passenger cruises in the Caribbean, Alaska, and the Far East. Management is currently add...

Q: British Airways (BA) has implemented the balanced scorecard. Match

British Airways (BA) has implemented the balanced scorecard. Match the following performance indicators: Return on invested capital …….………..……On-time arrivals Earnings growth ……………………….…………Percent emp...

Q: Joe Bell, president and chief executive officer of Dyna Golf,

Joe Bell, president and chief executive officer of Dyna Golf, has called a meeting of the executive committee of his board of directors. He is concerned about the price competition and declining sales...

Q: Mat Machinery has received an order from Dewey Sales Corp. for

Mat Machinery has received an order from Dewey Sales Corp. for special machinery. Dewey pays Mat Machinery a deposit of 10 percent of the sales price for the order. Just before the order is completed,...